The TLPA press release also notes that, “both ‘ride-sharing’ drivers and passengers have a financial incentive for cash trips—they’re cheaper for passengers and more profitable for drivers,” since drivers avoid paying a 20 percent fee to Uber and can pass along part of the difference to customers.

In a statement made to KHOU, a spokesman for Uber explained that, “driver partners are banned from using the Uber platform if they are found to be in violation of (company) policies,” which specifically prohibit street-hails.

The sting operation conducted in Houston is part of a larger struggle, being waged at the state and local levels, between ride-sharing services and established taxi companies.

Uber does not own or provide any vehicles, instead serving as a middleman to connect passengers and drivers, allowing it to get around regulations that severely restrict competition among traditional taxi services.

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